1982 (7) TMI 155

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.... IT Act, 1961 for the asst. yrs. 1976-77, 1977-78 and 1978-79 was valid; (2) that the lower authorities have erred in clubbing the share income and interest of the minor child of the assessee in the firm of M/s. Sri Venkateswara Silks, Dharmavaram with the income of the assessee, an individual and who is the mother of the minor child for the above assessment years. 2. Taking the first point abou....

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....) of the IT Act 1961: . Rs. 1976-77 Share income 9, 516 . Interest 12, 000 1977-78 Share income By 3, 095 . Interest 17, 075 1978-79 Share income 4, 294 . Interest 19, 986 The ld. counsel for the assessee had urged that the lower authorities have erred in including the above share income and interest in the assessment of the assessee u/s 64 (1)(iii) of the Act. He pointed out ....

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....ct of payment of interest on accumulated profits the provisions of 64 (i)(iii) would be applicable. As regards the inclusion of the share income he submitted that the inclusion is quite in order. 4. We have considered the rival submissions. We have perused the deed of partnership of M/s. Shri Venkateswara Silks, Dharmavaram dt 2nd April, 1975; Clause 4 thereof reads as under: "Required capital f....

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....butions towards capital. Therefore we agree with the submissions of the ld. Counsel of the assessee that the minor D. Venkatesulu is not obliged to make contributions of capital in the above firm. The other facts obtaining in this case are similar to the facts of the case of Sri Bajranglal referred to above in ITA No. 1016 decided by the Third Member and disposed of by the order of the Bench dt 17....